The Four Cornerstones of Corporate Finance
The four cornerstones of corporate finance start with the axiom that companies exist to meet customer needs in a way that translates into reliable returns to investors. Together, the cornerstones form a foundation upon which executives can ground decisions about strategy, M&A, budgets, financial policy, technology, and performance measurement—even as markets, economies, and industries change around them.
Content: Article | Authors: Bill Huyett, Richard Dobbs, Tim Koller | Source: Business Finance Magazine | Subject: Finance
The CEO’s Guide to Corporate Finance
Four principles can help you make great financial decisions—even when the CFO’s not in the room.
Content: Article | Authors: Bill Huyett, Richard Dobbs, Tim Koller | Source: McKinsey Quarterly | Subjects: Finance, Management
Richard Dobbs, Bill Huyett, and Tim Koller
No business has an inherent value in and of itself; it has a different value to different owners or potential owners—a value based on how they manage it and what strategy they pursue.
Content: Quotation | Authors: Bill Huyett, Richard Dobbs, Tim Koller | Source: McKinsey Quarterly | Subjects: Finance, Management, Strategy
The Value of Share Buybacks
Companies shouldn’t confuse the value created by returning cash to shareholders with the value created by actual operational improvements. After all, the market doesn’t.
Content: Article | Authors: Richard Dobbs, Werner Rehm | Source: McKinsey Quarterly | Subject: Finance
Measuring Stock Market Performance
Total Returns to Shareholders (TRS or TSR) doesn’t reflect a company’s performance or health. What does?
Content: Article | Authors: Richard Dobbs, Tim Koller | Source: McKinsey Quarterly | Subject: Finance | Industry: Investing
Are companies getting better at M&A?
Building the Healthy Corporation
The emphasis on quarterly earnings at the expense of longer-term corporate health sometimes reaches absurd extremes: in one survey, executives said they would scale back investments in R&D and marketing to meet their quarterly forecasts–even if these cuts would hurt the long-term prospects of their companies. Since the capital markets value both immediate and sustained performance, companies should embrace a portfolio of initiatives over three … [ Read more ]
Content: Article | Authors: Keith Leslie, Lenny T. Mendonca, Richard Dobbs | Sources: CFO Publishing, McKinsey Quarterly | Subjects: Finance, Management
Measuring Long-Term Performance
Good accounting results and rising share prices can mask trouble ahead, and companies can create substantial value despite falling share prices. Developing a holistic picture of the health of a company-its ability to generate and sustain value-is difficult but doable.
Content: Article | Authors: Richard Dobbs, Tim Koller | Source: McKinsey Quarterly | Subjects: Finance, Management